Personal insolvency at five-year high in Scotland

Insolvency numbers have risen for the third year in a row in Scotland. Photo: Getty

Personal insolvency is now at a five-year high in Scotland after increasing by more than a fifth last year.

Data from financial advisers Scottish Deed Trust shows personal insolvencies in Scotland rose from 10,602 in the 2017 to 2018 financial year, to 12,788 last year – an increase of 21%, and highest since 2013 to 2014. It also marks the third year in a row that numbers have risen.

That more people are seeking help is a positive, but the overall rise in insolvency paints a worrying picture, says Scottish Trust Deed.

A spokesperson said: “Earlier this year, the Scottish government's business secretary, Jamie Hepburn, said the rise in insolvency was a result of ‘the challenging economic times we are facing, with more Scots experiencing increased financial pressures’.

“We agree with that, but Brexit, market volatility and ongoing challenges with universal credit mean those pressures are only likely to continue – and it’s important that our leaders understand the very real pressures Scots are facing in trying to make ends meet.